Construction on Vicinity Centres’ Ellenbrook Central in Perth’s north-east commences this month as the centre undergoes a $63 million expansion featuring a brand-new Kmart and an additional 20 retailers.

Already home to some of Australia’s favourite retailers ALDI, Best & Less, Big W, Coles and Woolworths, the 11,000m2 expansion will bring the centre’s total offer to more than 120 retailers and brands.

Centre Manager Mike Barrington said: “This expansion is an exciting new chapter for Ellenbrook Central as we’re growing together with our local community.

“For 15 years, Ellenbrook Central has been a focal part of the Perth’s north-east growth corridor and our customers are highly anticipating Kmart, one of Australia’s most loved retailers, opening next year.”

Ellenbrook Central is in one of the fastest growing areas in Perth’s north east corridor with a population that is forecast to grow by 3.5% per annum over the next 10 years.

With construction commencing this month, the expansion will create an estimated 500 jobs including 120 jobs through construction and 380 new ongoing retail, hospitality and services jobs for the local economy.

Visiting Ellenbrook Central will be even more convenient with more than 320 new rooftop car spaces topped with solar generating shades. Upon completion (expected September quarter next year), more than 2,300 car spaces will be available for quick and easy parking year around.

Earlier today, Vicinity Centres (Vicinity, ASX:VCX) released its results for the 12 months to 30 June 2019, with FFO of $689.3 million or 18.0 cents on a per security basis. Vicinity’s statutory net profit after tax was $346.1 million.

Commenting on its development pipeline, Grant Kelley, CEO and Managing Director, said: “During the year, we made strong progress on our $3.3 billion (Vicinity’s share: $1.9 billion) development pipeline. In October, we opened DFO Perth, 100% leased and trading from day one. We also continued to elevate Chadstone’s market-leading status, expanding the luxury precinct with first-to-market brands and flagships, a new visitor lounge, valet parking and new destination and casual dining offers.

L-R,Nev Power, Perth Airport Chairman, John Carey, MLA, Carolyn Viney, Vicinity Centres

“This month, the final major stage of The Glen’s $430 million development was completed, with the first four days of trading attracting more than 250,000 visitors. The centre now has more than 250 retailers, a new-format David Jones and a new indoor-outdoor dining precinct. Construction has also commenced on more than 500 apartments at The Glen in the largest air-rights deal in Australia, Vicinity’s first residential project to realise value from mixed-use opportunities across our portfolio.”

L-R Chris Wilson, David Jones, Jeff Xu, Golden Age Group, Grant Kelley, Vicinity Centres, Barnaby Giudice, Vicinity Centres, Project Director

A transformational development at Chatswood Chase Sydney, positioning the centre as Sydney’s northern leading luxury and lifestyle destination, is in advanced planning with development approval granted and construction expected to start in mid 2020.

Additionally, Vicinity is advancing plans for several retail and mixed-use developments:
· Development applications are expected to be lodged in 2020 for Box Hill Central and Bankstown Central.
· Five projects are in detailed planning at Chadstone.
· Other mixed-use developments to capitalise on strong inner-city locations at Buranda Village, Victoria Gardens Shopping Centre, Emporium Melbourne and QueensPlaza.

In the past 12 months, Vicinity has divested 12 assets for $670 million at a 3.9% discount to book value. Capital recycling since merger in June 2015 to today has positioned Vicinity’s portfolio for long-term growth. Vicinity’s direct portfolio has reduced from interests in 88 assets valued at $14.3 billion at June 2015, to interests in 62 assets valued at $15.8 billion at June 2019. Over this time, specialty store MAT per sqm has increased by 32%, average asset value has increased 1.7 times, and we have decreased gearing by 90 basis points while enhancing our investment grade credit ratings.